Tests of Controls

question 2

Multiple Choice

Tests of controls

• A) are the procedures used to test the effectiveness of controls in support of a reduced assessed control risk.
• B) are used to support the ending balances in the balance sheet and income statement accounts.
• C) are performed at the end of the audit.
• D) are designed to detect fraud.

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Definitions:

Psychosocial Stage

Stages of psychological and social development postulated by Erik Erikson, through which an individual progresses throughout their lifetime.

Identity Versus Identity Confusion

Erikson’s fifth developmental stage, which individuals experience during the adolescent years. At this time, adolescents examine who they are, what they are all about, and where they are going in life.

Initiative Versus Guilt

A stage in Erickson's psychosocial development theory where children learn to exercise independence and initiative, but may feel guilt when unsuccessful.

Psychosocial Stages

Erikson's theory that proposes eight stages of human development, each characterized by a different conflict that must be resolved for healthy psychological development.